WhatToMine is a great website where you can check how profitable is to mine selected altcoins in comparison to Ethereum. Now, you have to remember that calculations are based on mean values. The final results may vary. As we know, crypto is quite volatile and prices can change daily.
What you can use the website for is to check the hash rate, power consumption, and profit. So, if you are getting ready to get into the crypto mining business, you can check beforehand whether it will be profitable or not. And how much will it cost you?
What is a Mining Calculator?
A mining profit calculator allows you to determine how much can you profit from a certain miner, be it a Bitcoin miner or an altcoins miner. The mining calculator will take into account all relevant costs, including hardware, fees, electricity, and more.
To use the crypto mining profitability calculator, you enter values like the hash rate of the mining hardware, pool fees, electricity cost, and so on. The more information you enter, the more detailed calculation you will get. And the more accurate your results will be.
Some values like the exchange rate can be updated automatically with the latest network stats. And you can adjust any value manually to simulate different possible scenarios.
Is Mining Profitable?
In the past year or so, mining cryptocurrencies and buying cryptocurrency has become a popular business. With the way Bitcoin exploded to an all-time high of $64,000 in the first half of 2021, people all over the world wanted to get their hands on it.
But how profitable is mining bitcoin and other altcoins? The largest expense in pursuing a crypto mining business is the mining hardware. Just like good computers cost more money, good mining hardware is expensive.
It is worth noting that there are three main mining hardware manufacturers today. And because the supply is limited, and the demand is high, the price is even higher.
When you want to see whether it is profitable or not to mine any cryptocurrency, you have to look at the miner’s hash rate measured in Terra Hash. A higher hash rate means a more powerful miner.
Now let’s talk more about some of the factors that determine whether mining is profitable or not. Yes, you can check all of the factors on WhatToMine website, but you have to understand the terminology, right?
The most important factor is hardware efficiency. Many people think we talk only about hash power in this case, but that alone is not enough the determine the quality of a miner. Yes, hash rate is important, but not the only factor.
Here is a comparison. We rate cars by their MPG, miles per gallon. In that spirit, miners are valued by how many cryptocurrencies like Bitcoin they yield according to the electricity they consume.
Miners use massive amounts of electricity, and that costs money. So, you want a miner that has a high hash rate and uses the provided electricity efficiency. Look at the W/GH, watts per gigahash metric to check the efficiency. The lower that number is, the more efficient your miner is.
Another factor you have to take in mind is the cost of electricity. It is not the same everywhere in the world. And in 2022, electricity costs went sky high. A high monthly electric bill means significant costs on top of the up-front cost of the hardware.
There is a reason why many miners were located in China. The country had cheap electricity, a key factor in making mining profitable.
In the United States, many miners are located in Washington State, where power costs are cheaper thanks to hydroelectricity.
And there are always creative ways to use the heat generated by miners. For example, in cold areas, the weather serves as a natural cooler, and mining hardware can reduce your heating cost in the winter. So, it is a win-win situation.
There is inflation in the crypto world as well. The blockchain is smart and tries to keep inflation in check. So, as more miners join the network, the difficulty is raised and it gets harder to mine. This ensures that say, Bitcoin blocks, are mined on average, every 10 minutes. Mining revenue is based partially on the current difficulty to mine cryptocurrencies.
You have to take into account the price of Bitcoin and altcoins. Because the price is volatile, you cannot predict it. Mining revenue is shown in USD based on the exchange rate at the time of calculation.
What does that mean? You can calculate your mining profitability today, but the price might change in a month or two, and your revenue will increase or drop accordingly.
Now, while the Bitcoin price is not predictable, the block reward is. For Bitcoin, that means every four years the amount of Bitcoins awarded for each block is cut in half. This happens every 210,000 blocks to be exact, or usually every four years.
In 2012, the reward was cut from 50 Bitcoins to 25 per block, then to 12.5 in 2016, and it is now at 6.25. In 2024, this reward will fall to just 3.125 Bitcoins per block.
Halving cuts miners reward in half, but increases demand resulting in a Bitcoin price increase. That keeps mining profitable.
Finding Your Best Mining Option
So, how do you start mining crypto? Well, use WhatToMine website to calculate your profitability, and then get a miner and join a mining pool. Install your mining software and start mining.
The best part about the WhatToMine website is you can calculate everything. For starters, you can see the ASIC miner profitability ranking. Every model has its own ranking, starting with the Bitmain Antminer E9, Goldshell KD6, Bitmain ANtminer L7, iBeLink Bm, and so on.
Then, you check the GPU profitability ranking. As we said before, there are not many manufacturers that provide quality mining hardware. When it comes to GPU profitability, you will notice Nvidia ranking on top and has some of the best GPUs for mining. As of March 2022, that is the Nvidia GeForce RTC 3090 Ti, followed by GeForce RTC 3080 Ti and Nvidia GeForce RTC 3090.
Last, but not least, check the crypto coins mining profit calculators, and see what coin you should mine. It is nice to research a bit, getting to know and understand the uses of different coins. That will prevent you from mining a bad coin.
Now, as we said before, crypto is volatile and you cannot predict it, but you can get a good sense of which coins perform better by looking at history and utility use.